Bloomberg News

Shell to Invest $4 Billion in Two Nigerian Oil and Gas Projects

July 26, 2012

Royal Dutch Shell Plc (RDSA), operator of Nigeria’s largest oil fields, agreed to invest about $4 billion with its partners in two oil and gas projects in the country.

The Shell Petroleum Development Co. of Nigeria, which Shell operates as a venture with Eni SpA (ENI), Total SA (FP) and the government, will develop the Forcados-Yokri project and the Southern Swamp associated gas gathering project, the company said today in a statement. The projects are expected to pump 100,000 barrels and 85,000 barrels of oil equivalent a day at peak, respectively.

Southern Swamp will “collect gas, reduce flaring, while there is associated oil production and it will produce gas for domestic use for power,” Chief Financial Officer Simon Henry told reporters today in London. Both of the projects “are very strategic” for Nigeria. The Forcados-Yokri fields are located in shallow waters in the west of the country.

Shell, based in The Hague, last month said it planned to invest about $3.5 billion in a natural-gas project in Imo state in the southeast. It is working on 17 gas projects in Nigeria, set to cost a total of $6 billion, according to the company.

Shell is still looking for buyers for its two oil and gas exploration licenses in the African nation. The company has already found investors for four permits in its effort to reduce its geographical spread across Nigeria, Henry said.

To contact the reporter on this story: Eduard Gismatullin in London at egismatullin@bloomberg.net

To contact the editor responsible for this story: Will Kennedy at wkennedy3@bloomberg.net


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